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10-QPeriod: Q3 FY2013

CBRE GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 12, 2013For Securities:CBRE

Summary

CBRE Group, Inc. reported a significant increase in revenue and net income for the first nine months of 2013 compared to the same period in 2012. Revenue grew by 9.8% to $5.0 billion, driven by strong performance across its global services, particularly in sales and leasing activities. Net income attributable to CBRE Group, Inc. shareholders rose to $201.9 million, a substantial improvement from $142.6 million in the prior year. This growth was supported by effective cost management, with operating expenses as a percentage of revenue decreasing, despite ongoing strategic investments. The company also successfully refinanced a significant portion of its debt during the period, extending maturities and lowering interest expenses, enhancing its financial flexibility. The company's segments all showed positive revenue growth, with Global Investment Management and Americas leading the way. The company highlighted the ongoing recovery in commercial real estate markets and its strategic acquisitions as key drivers for future growth. Management expressed confidence in the company's ability to meet its working capital requirements and fund its investments through internally generated cash flow and its revolving credit facility.

Financial Statements
Beta
Revenue$1.73B
Operating Expenses$1.58B
Operating Income$158.12M
Interest Expense$27.78M
Net Income$94.44M
EPS (Basic)$0.29
EPS (Diluted)$0.28
Shares Outstanding (Basic)328.31M
Shares Outstanding (Diluted)332.06M

Key Highlights

  • 1Revenue increased by 9.8% to $5.0 billion for the first nine months of 2013, driven by global service lines like sales and leasing.
  • 2Net income attributable to CBRE Group, Inc. shareholders increased to $201.9 million for the first nine months of 2013, up from $142.6 million in the prior year.
  • 3The company successfully completed significant debt refinancing activities, improving financial flexibility and reducing interest expense.
  • 4Operating expenses as a percentage of revenue decreased across most segments, demonstrating improved operational efficiency and leverage.
  • 5All operating segments reported revenue growth, with the Americas and Global Investment Management segments showing particular strength.
  • 6The company's balance sheet showed a decrease in total assets from $7.8 billion to $6.2 billion, largely due to debt repayment and strategic asset management.
  • 7Cash provided by operating activities improved significantly, totaling $234.6 million for the first nine months of 2013, compared to a net cash used of $119.9 million in the prior year.

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